The Canadian arm of the aircraft engine manufacturer Pratt &
Whitney closed a six-year U.S. government probe last week by admitting
that it helped China produce its first modern attack helicopter, a
serious violation of U.S. export laws that drew a multimillion dollar
fine.

At the same time it was helping China, the company was separately
earning huge fees from contracts with the Pentagon, including some in
which it was building weapons meant to ensure that America can maintain
decisive military superiority over China's rising military might.

The Chinese helicopter that benefited from Pratt's engines and
related computer software, now in production, comes outfitted with 30 mm
cannons, anti-tank guided missiles, air-to-air missiles and unguided
rockets. "This case is a clear example of how the illegal export of
sensitive technology reduces the advantages our military currently
possesses," Immigration and Customs Enforcement Director John Morton
said in a statement released on June 28.

The events are once again raising questions about the circumstances
under which major defense contractors might be barred from government
work. Independent watchdogs have long complained that few such firms
have been barred or suspended, even for egregious lawbreaking, such as
supplying armaments or related equipment to a hypothetical adversary.